Warning, borrowing money also costs money.
The Line of Credit: a cash reserve always available for your unexpected needs
Face setbacks and unexpected expenses with complete peace of mind. The Line of Credit provides you with a flexible credit line in Belgium and Luxembourg, which you can use when you need it, and which replenishes as you make repayments.
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** A loan commits you and must be repaid. Check your repayment capabilities before committing. The rates indicated are for information purposes only and subject to approval of your application.
The Line of Credit: your financial safety net
The Line of Credit, also known as revolving credit, is a financing solution that is radically different from a traditional loan. Instead of receiving a fixed sum all at once, we provide you with a permanent cash reserve up to a certain limit. You are free to draw from this reserve according to your needs, in whole or in part.
The unique feature? You only pay interest on the amount you have actually used, and your reserve is replenished as you pay it back, making it available again.
The Line of Credit is ideal for:
- Managing unexpected events: a car or boiler repair, an unexpected medical bill.
- Smoothing out your expenses: coping with a tighter cash flow period while waiting for an income.
- Seizing an opportunity: taking advantage of exceptional sales, a last-minute trip.
- Avoiding a bank overdraft: using your reserve is often less expensive than letting your account go into the red.
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The advantages of a flexible cash reserve
The Line of Credit stands out with unique benefits designed for responsiveness and flexibility:
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Immediate availability: Once your line of credit is approved, the money is permanently available. No need to reapply for each need.
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Cost proportional to use: No use, no cost. You only pay interest on the portion of the reserve you have utilized.
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Reusable reserve: Every repayment you make frees up the capital again, which becomes immediately available for future use.
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No proof of purchase required: You use the funds for the expenses of your choice, in complete confidentiality and without having to provide any invoices.
This flexibility makes the Line of Credit the ideal financial shock absorber for navigating the uncertainties of daily life with more peace of mind.
Activate your Line of Credit in a few steps
The process to set up your cash reserve is simple and transparent.
1. Defining the limit
Using our simulator or with an advisor, you define the maximum amount of your cash reserve, tailored to your income and needs.
2. Application and analysis
You complete your application online and provide the necessary supporting documents. We analyze your file responsibly.
3. Contract and activation
After approval, you sign the line of credit agreement. Your reserve is then active and ready to be used when needed.
Transparent operation for controlled use
Understanding the mechanics of a Line of Credit is key to using it wisely:
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A variable interest rate: Unlike an installment loan, the rate for a line of credit is often variable. It is applied only to the amount you use and for the duration of its use.
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A minimum monthly repayment: Each month, you must repay a minimum amount, usually a percentage of the capital used. This payment replenishes a portion of your reserve.
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The freedom to repay more: You are always free to repay more than the minimum, or even to pay off your entire debt at any time without fees. This is strongly recommended to limit interest costs.
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Clear account statements: You receive monthly statements detailing the amount used, interest charged, the minimum repayment, and the capital still available.
Disciplined and informed use allows you to benefit from all the flexibility of this product without falling into its pitfalls.
Our tips for the wise use of your reserve
A Line of Credit is a powerful tool. Here’s how to stay in control.
Reserve it for real emergencies
Use your line of credit for its primary purpose: urgent and unplanned expenses. For a large-scale project, an installment loan is more suitable.
Replenish your capital quickly
As soon as your situation allows, repay more than the required minimum. Your goal should be to bring the used balance back to zero as quickly as possible to minimize interest.
Track your spending
Regularly check your statements to maintain a clear view of the amount used and prevent debt from accumulating without you noticing.
Warning, borrowing money also costs money. A poorly managed line of credit can lead to over-indebtedness. Our advisors are here to guide you.
Testimonials: flexibility serving everyday life
“My boiler broke down in the middle of winter. Thanks to my Line of Credit at CPE, I was able to pay the repairman immediately without waiting for my paycheck. I paid back the amount over the next two months. It was a real relief.”
“As a self-employed person, my cash flow fluctuates. Having a line of credit available allows me to pay my suppliers on time, even when a client is late in paying me. It’s an essential safety net for my business.”
Line of Credit FAQ
Answers to all your questions about the operation, benefits, and precautions to take with a cash reserve or revolving credit.
It’s very simple: an Installment Loan is a “one-shot”. You receive a fixed amount once, and you repay it over a fixed term with fixed monthly payments. It’s ideal for a planned project.
The Line of Credit is a “permanent reserve”. The amount is at your disposal, whether you use it or not. It’s a flexible cash flow solution for unplanned needs. The rate is often higher and variable, and you only repay what you use.
Each month, you must pay a minimum amount which is usually a percentage of the capital you have used (for example, 3% or 5%). This amount includes the month’s interest and a portion of the capital. By only paying the minimum, the total repayment can be very long. It is therefore always advisable to repay more than this minimum as soon as possible to reduce the cost and duration of your debt.
Yes, in general, the APR (Annual Percentage Rate) of a line of credit is higher than that of an installment loan. This higher cost is the trade-off for the great flexibility and permanent availability of the cash reserve. That’s why it’s crucial to reserve this type of credit for occasional needs and to repay it quickly.
Yes, you can request to terminate your line of credit agreement at any time. For the termination to be effective, you must first repay the entire capital you have used, as well as any interest due. Once the balance is brought to zero, the contract can be closed.
If you never use your line of credit, it costs you absolutely nothing. There are no annual processing fees or account maintenance fees. You only start paying interest from the moment you draw on the reserve. That’s the whole advantage of a financial “safety net”: it’s there if needed, but costs nothing if it remains unused.
Yes, the limit of your line of credit can change. If your financial situation improves (a salary increase, for example), you can request an increase in your credit line. This request will be subject to a new review of your file. Conversely, you can also request to reduce your limit at any time if you feel it is too high for your needs.